HOME Investment Partnerships Reauthorization and Improvement Act of 2025

The HOME Investment Partnerships Reauthorization and Improvement Act of 2025 aims to reauthorize and significantly reform the existing HOME Investment Partnerships Program. It authorizes substantial appropriations, starting at $5 billion for fiscal year 2025 and increasing annually to over $6 billion by fiscal year 2029 , ensuring continued funding for affordable housing initiatives. The bill also increases the percentage of funds that can be used for program administration from 10 percent to 15 percent , providing more resources for managing these critical programs. The legislation modifies the qualification thresholds for participating jurisdictions, requiring the Secretary to adjust the eligibility amount for inflation annually after fiscal year 2025. It also reforms the process for reallocating unspent funds, allowing the Secretary to remove non-compliant jurisdictions from eligibility for such reallocations. These changes aim to improve the efficiency and accountability of the program's administration and fund distribution. The bill amends the definition of affordable housing , clarifying exceptions for foreclosure and unforeseen circumstances and introducing specific alternative requirements for "small-scale housing" (up to 4 rental units), including a mandate for voucher acceptance. It also adjusts the maximum rent for affordable housing from 95 percent to 110 percent of fair market rent or a Secretary-established percentage. Significant reforms are made to homeownership resale restrictions , requiring subsequent purchases by qualified low-income persons at a price that provides the original owner a reasonable return on investment or allows for recapture of the investment. The bill also permits community land trusts to acquire housing under specific conditions and allows for the suspension or waiver of certain requirements for military members and heirs of deceased owners. To strengthen oversight, the bill mandates on-site property inspections for compliance with housing codes or national standards and requires public reporting of these inspection results. It also enhances enforcement mechanisms and penalties for noncompliance, including the authority to reduce payments to participating jurisdictions that misuse funds. A major new provision establishes a HOME loan guarantee program , authorizing the Secretary to guarantee loans for participating jurisdictions to finance the development or preservation of affordable housing. This program pledges the full faith and credit of the United States for guaranteed obligations and sets initial aggregate principal amounts for guarantees at $2 billion for fiscal year 2025 , with inflation adjustments thereafter. Finally, the bill refines rules related to Community Housing Development Organizations (CHDOs) and introduces a formal definition for community land trusts . It modifies the CHDO set-aside, requiring CHDOs to materially participate in the ownership or development of housing and allowing uninvested set-aside funds to be used for any eligible activities if not utilized by a CHDO within 24 months.